Roofing Materials Cartel Probe Still Continues a Year On

In an update on the suspected UK Roofing Materials cartel, the Competition and Markets Authority (CMA) has reported that it has taken the decision to continue its investigation.

The cartels and price-fixing watchdog started its enquiry more than a year ago.

Roofing Materials Cartel Probe

On 11 July 2017, the CMA launched the case examining suspected anti-competitive arrangements in the UK roofing materials sector. Anti-competitive arrangements can include cartels where an agreement is reached between businesses not to compete with each other. The agreement can often be verbal and may happen at industry meetings ostensibly taking place as other types of event.

The competition watchdog launched a campaign earlier this year to encourage whistleblowers to contact the agency in exchange for immunity from prosecution.

Typically, illegal cartels involve cartel members agreeing on price fixing, bid rigging, output quotas or restrictions, as well as territorial market sharing arrangements.

Illegal vertical agreements can be made where manufacturers agree with distributors that prices will be fixed, or supply will be restricted. In some cartels, more than one of these criminal agreements can be made.

The CMA states that no assumption should be made of whether competition law has been broken in the roofing materials case. It will next report on the investigation’s outcome before the end of December 2018.

The regulator has not reached a view of whether there is sufficient evidence to prosecute. Likely outcomes are for a statement of objections to be issued to any or all of the parties under investigation. Not all cases result in the CMA issuing a statement of objections.

If the CMA does issue a statement of objections, it is likely to advise that actions will need to be taken by the manufacturers or distributors of roofing materials to open or improve competition in the roofing materials market.